Credit Card vs. Debit Card: Which is Better?

Don’t you find it frustrating when there’s a hot seat sale for the country you’ve been meaning to visit but you can’t book or a 75% off at your favourite boutique but you can’t buy it because you’ll be over budget if you did. With a credit card or debit card, you can buy off or pay your bills without having to withdraw your cash. But, credit card vs. debit card, which is better? Read on to know which is best for you depending on your spending habit.  

Credit Card vs. Debit Card: The Difference

The credit card and debit may look the same with 16-digit card numbers, expiration dates and PIN codes but’s that’s the only thing they both are similar for. Debit cards allow the consumers to spend money that they have by getting funds from the cash deposited to the bank. Credit cards allow customers to borrow money from the bank where you applied the card for up to a certain limit depending on your salary in order to purchase items or withdraw cash.

Credit Card vs. Debit Card: The Advantages

The advantage for credit card is fees. People who like to manage their money tend to spend less and have fewer fees which make consumer prefer debit cards over credit cards. Debit cards doesn’t have any annual fee and other payment fees. You get to control your spending because the money you draw from the debit card is something you already have.

If you often buy things impulsively, a debit card will be suitable for you to limit your spending and this will help you avoid the temptation of a credit card.

Credit cards offer a lot of advantages for users. People can reap cash, discounts, travel points and a lot of other benefits by using rewards cards. It’s wise to use a credit card only if you can pay it off full time within the next month. By being a responsible spender, you get to build and raise your credit score which is reflected on your credit report.

If you can control and manage your spending, go for a credit card, but if you can’t, better just go with a debit card. These plastic cards are designed to help you manage your expenditures well and it’s up to your spending habits which card you should get.

Looking for a credit card that will suit your needs? Check out the latest credit cards by comparing credit cards with the lowest interest rates now with GoBear!